Disruption is a way of life in our constantly evolving international energy ecosystem. That was a key message highlighted at the recent Association of the Electricity Supply Industry of East Asia and Western Pacific (AESIEAP ) CEO Conference, held in Penang, Malaysia in October 2017.
Disruption can sometimes be an alarming word when it comes to power. Yet what technological disruption offers is new ways of working that can help build a more resilient landscape.
“We should be technology agnostic. We should be thinking what will benefit the customers. Different segment of the customers may require different technology, based upon their location and spending power. We should reflect on how we are relevant to the customers’ needs and expectations.” – Datuk Seri Ir. Azman Mohd, Chief Executive Officer and President, Tenaga Nasional Berhad
Here we bring you key insight from thought leaders and captains of industry on five key areas of disruption that are transforming our energy landscape.
As renewable energy technologies continue to evolve, and the cost of technology falls, power producers around the world are increasingly looking at ways to better employ RE solutions. That disruption means an opportunity for customers, and a challenge to the traditional ways of operating for many producers.
“The flavour of the day is renewable energy. RE prices are declining so fast that the discussion is now on what’s happening to competitive returns?” – Humayun Tai, New York Senior Partner, McKinsey & Co.
“With Net Energy Metering (NEM), Large Scale Solar (LSS), Green Sukuk Financing Scheme and Feed-in Tariff (Fit) mechanisms, Malaysia is expected to surpass the RE target by 2020.” – Deputy Chief Secretary Datin Badriyah Malek, Ministry of Energy and Greentech (KeTTHA)
Digital technologies and data analytics are offering increasingly powerful tools to help us transform the energy sector towards a more sustainable and efficient landscape. This was a topic which offered a significant focus at AESIEAP, discussing efficiency efforts in Malaysia and beyond.
“The Ministry is collaborating with TNB on sustainable energy efforts including EE to empower customers on ways to reduce their energy consumption, for example through the Home Energy Report programme.” – Deputy Chief Secretary Datin Badriyah Malek, Ministry of Energy and Greentech (KeTTHA)
“The world is changing, vulnerable, uncertain, complicated and ambiguous… new technology can help address these problems.” – Bhawana Aungkananuwat, EGAT Deputy Governor-Administration, Thailand
Battery storage technologies are becoming increasingly viable as a market solution, enabling further disruption in distributed power and renewable energy. These technologies are driving an evolution in how we think about energy production.
“If we do not change, our presence will become smaller and smaller… as energy storage technologies improve, and battery prices continue to fall, customers will increasingly adopt them into their renewable energy setup.” – Shinichiro Kengaku, Managing Executive Officer, Tokyo Electric Power Company Holdings
The growing role of decentralised power is driven by emerging disruptions in both energy storage and renewable energy. These new capabilities offer the opportunity for power producers to become more efficient while delivering innovative energy solutions to meet customer needs.
“Decentralisation, Decarbonisation and Digitalisation… these are important shifts as we forge on to become more operationally efficient, reliable and effective in serving the needs of our customers and the interests of our stakeholders.” – Oscar S. Reyes, President and Chief Executive Officer, Meralco, Philippines
Energy efficient technologies will continue to impact demand, disrupting established market models as producers work to try and inform and empower customers to become more energy efficient consumers. Increasingly this desire for energy efficiency is driven by consumers themselves, who are more and more aware of the need for more sustainable energy consumption.
“What do customers want in Singapore? Cheap electricity, and increasingly demand for green or sustainability.” – Wong Kim Yin, Group Chief Executive Officer, Singapore Power, Singapore